“Crypto Highlights: Lawsuit Dropped, Regulatory Critique, and Terraform Labs’ Bankruptcy Filing”
Stay informed about today’s crypto developments with the latest updates on Bitcoin price, blockchain, DeFi, NFTs, Web3, and crypto regulations.
Alameda Research Withdraws Lawsuit Against Grayscale
Alameda Research, the now-defunct FTX hedge fund, has voluntarily dismissed its lawsuit against Grayscale Investments shortly after the successful conversion of Grayscale Bitcoin Trust (GBTC) into a spot exchange-traded fund (ETF). Grayscale responded, expressing satisfaction with the dismissal and emphasizing that the legal action lacked merit. The lawsuit, initially filed in March 2023, sought a court order against Grayscale’s management fees for GBTC, coinciding with notable outflows affecting Bitcoin’s price.
U.S. GAO Criticized for Lack of Analysis in Crypto Report
Paul Grewal, Chief Legal Officer at Coinbase, criticized the United States Government Accountability Office (GAO) for its recent crypto report on sanctions evasion. Grewal highlighted the GAO’s admission that cryptocurrencies’ decentralized nature and public ledger could aid in tracing transactions and identifying illicit actors. The report acknowledged the limited use of digital assets for payments and suggested that implementing global standards could enhance compliance with Anti-Money Laundering regulations.
Terraform Labs, Linked to Do Kwon, Files for Chapter 11 Bankruptcy
Terraform Labs, the company associated with Do Kwon and the now-defunct stablecoin TerraUSD (UST), has filed for Chapter 11 bankruptcy protection in the United States. The filing, made at the United States Bankruptcy Court for the District of Delaware, disclosed estimated liabilities and assets between $100 million and $500 million. Chris Amani, CEO of Terraform Labs, stated that the bankruptcy filing is essential to address outstanding legal challenges while allowing the company to pursue collective goals. The move follows the recent postponement of Kwon’s fraud trial to March 25 by the U.S. Securities and Exchange Commission.
These developments offer a glimpse into the evolving landscape of the crypto space, encompassing legal actions, regulatory critiques, and corporate restructuring.